Delta buying Alaska Airlines?
Jan 30, 2010, 9:35 pm
#1
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Delta buying Alaska Airlines?
I heard a rumor from a Delta pilot that Delta might be buying Alaska Airlines. Has anyone else heard this rumor?
Jan 30, 2010, 9:52 pm
#3
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Yes, pilots would be the authoritative source for rumors. 
I think DL should worry about finishing their current merger before figuring out who else to buy- aside from the fact that a bunch of AS's network becomes instantly unprofitable the moment someone like AA or DL buys them, thanks to their higher labor costs/etc., plus you'd lose revenue from AA codeshares when AA tells DL which short pier to take a walk off of.
It's a great plan if DL wants to hand over more markeshare to WN, though.
I think DL should worry about finishing their current merger before figuring out who else to buy- aside from the fact that a bunch of AS's network becomes instantly unprofitable the moment someone like AA or DL buys them, thanks to their higher labor costs/etc., plus you'd lose revenue from AA codeshares when AA tells DL which short pier to take a walk off of.
It's a great plan if DL wants to hand over more markeshare to WN, though.
Jan 30, 2010, 10:01 pm
#4
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ah yes the annual I heard a DL pilot say they were buying AS thread. Lets see 1 of 2 or 3 airlines making profit being bought by one thats losing money out the door before it comes in the door.....hmmm
Jan 30, 2010, 10:05 pm
#5
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+1
These rumors have been floating around quite a while... CO, AA and DL all want to buy AS it seems
With 1.2 billion cash on hand, and a stock price that's pretty good... more then $30 a share... hope that's not too tempting...
These rumors have been floating around quite a while... CO, AA and DL all want to buy AS it seems
With 1.2 billion cash on hand, and a stock price that's pretty good... more then $30 a share... hope that's not too tempting...
Jan 30, 2010, 10:10 pm
#6
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Pilot Unions and Management
It is my experience that Chief Pilots get the inside scoop at Management meetings - and then moments later that information is leaked to the Pilot Union. Therefore Pilot rumors are usually more reliable than the jumpseat chatter of Flight Attendants.
Soon we will be hearing news of the new DL/AS Elite member reciprocity that was recently halted as the DL/NW merger was finalized. Sometimes rumors can be a result of hearing inside information of that sort.
Who knows? Delta needs more of a west coast presence. Delta is now the world's largest airline - so could easily sync with AS and old AS routes could survive without the need of AA feeder traffic.
My only hope is that if it happened - Delta management would invest in the AS LAX terminal. What a dump!
Soon we will be hearing news of the new DL/AS Elite member reciprocity that was recently halted as the DL/NW merger was finalized. Sometimes rumors can be a result of hearing inside information of that sort.
Who knows? Delta needs more of a west coast presence. Delta is now the world's largest airline - so could easily sync with AS and old AS routes could survive without the need of AA feeder traffic.
My only hope is that if it happened - Delta management would invest in the AS LAX terminal. What a dump!
Jan 30, 2010, 10:12 pm
#7
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oh dont forgot WN is buying them also. As long as cash flow is good and theres a good share price they are in a solid position to not being bought out.
Jan 30, 2010, 10:16 pm
#8
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AS is moving to T-6 this year in a 150 million dollar move
New checkin, new Boardroom, new everything (except building) - but T6 will be renovated to some degree ^
Jan 30, 2010, 10:17 pm
#9
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Jan 30, 2010, 10:30 pm
#10
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This rumor has been brought up from time to time here, in blogs, and on A.net, etc... Yes, DL does have the resources to purchase AS; however, operationally speaking it is not really feasible or logical. It will do more damage than good. This is why DL is weaving in close with AS, so AS can give what DL has been trying to achieve on the west coast. That is about it, DL will not buy AS out, unless AS starts stumping bad and starts losing their market leadership on the west coast.
If this were to happen, the fax machine over at UA will start beeping with my request for status match printing out.
Jan 30, 2010, 10:32 pm
#11
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Am really looking forward to see how T-6 will be transformed and what the future holds for AS at LAX
Jan 30, 2010, 10:32 pm
#12
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It is my experience that Chief Pilots get the inside scoop at Management meetings - and then moments later that information is leaked to the Pilot Union. Therefore Pilot rumors are usually more reliable than the jumpseat chatter of Flight Attendants.
Delta needs more of a west coast presence. Delta is now the world's largest airline - so could easily sync with AS and old AS routes could survive without the need of AA feeder traffic.
The point of codesharing is you GET the benefits of the AS network for free... without having the headaches of a merger.
The day DL buys AS is the day champagne corks go off in various LCC corporate offices.
Oh, and SkyPiles sucks as a mileage plan. DL would instantly lose me as a customer (as opposed to now, where I will happily fly them because I can accrue miles on AS). I'd rather fly WN/VX/B6 domestic, and I'd probably switch to AA international, or maybe go with DL and find another SkyTeam member's plan that doesn't suck so hard and denominate their awards in Zimbabwe miles.
Last edited by eponymous_coward; Jan 30, 2010 at 10:44 pm
Jan 30, 2010, 10:43 pm
#14
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The other thing to consider is if they end up putting JL into SkyTeam, DL is going to need to spend some time figuring out what to do with the NRT hub (and then doing it). I think that might be a priority over buying another airline, especially given that the AS/DL codeshares aren't fully integrated yet (a bunch of old AS/NW codeshares are now unbookable on the AS website), and they might want to get THAT running, too.
Jan 30, 2010, 11:09 pm
#15
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But we haven't created the 2011 and 2012 predictions yet.